Despite current euphoria in market, returns in first half of 2023, modest

The rupee became the comeback kid, riding the crest of an FPI wave. Metals should forge ahead as should markets after a period of tumult

Notwithstanding the current euphoria in the market, the returns generated by equity markets in the first half of calendar year 2023 (CY23) have been modest. The S&P BSE Sensex has returned 5.1 per cent, while the National Stock Exchange Nifty has slightly underperformed, rising 4.8 per cent after going through a tumultuous period.

The broader markets have outperformed, with the Nifty Midcap 100 and the Nifty Smallcap 100 indices gaining 12.7 per cent and 10.9 per cent, respectively. The year began on a turbulent note amidst concerns over an unfavourable risk/reward ratio, thanks to high yields on debt products.

Foreign portfolio investors